European Union wine producers are currently facing significant transformations in the domestic, European, and global markets. Key developments include changes in production practices, the increasing popularity of alcohol-free wines, the expansion of wine tourism, and the effects of climate change.
On 4 December, the European Parliament and the Council reached a critical agreement to implement new regulations designed to address the challenges confronting the European wine sector. The Members of the European Parliament (MEPs) and the Council have negotiated a provisional deal on a new ‘wine package’ to mitigate these challenges and unlock market opportunities.
A notable component of this agreement involves clarifying regulations on de-alcoholised wines. The term “alcohol-free,” when accompanied by the designation “0.0%,” may be applied to products with an alcohol content not exceeding 0.05% by volume. Conversely, products with an alcohol strength of 0.5% or higher, which are at least 30% lower in alcohol content than their original category before de-alcoholisation, will be required to be labelled as “alcohol reduced.” This initiative represents a significant step forward in adapting to the evolving wine market.
“We are providing the sector with tools to tackle the profound crisis it is experiencing. These include measures to regulate supply in line with demand, such as the option of financing crisis measures, such as grubbing-up, with European funds, thereby ensuring equal opportunities for wine growers in the different Member States. We are also offering higher co-financing rates for measures for adapting to climate change. Finally, we have improved conditions for promotion outside the EU, which will allow for more stable and better targeted campaigns, and enhanced the conditions for wine tourism and the opportunities for diversification that it offers,” explained rapporteur Esther Herranz GarcÃa (EPP, Spain).
More funds for wine growers
In response to severe natural disasters, extreme weather events, outbreaks of plant diseases, or the emergence of plant pests, winegrowers will be afforded an additional year to plant or replant affected wine grape varieties. Negotiators have reached an agreement to allocate EU funds for the removal of damaged vines. Additionally, thanks to MEPs’ efforts, the national payment ceiling for wine distillation and green harvesting will be set at 25% of each member state’s total available funds.
Promoting wine tourism and exports
Producer organisations responsible for managing initiatives related to protected designations of origin and protected geographical indications are set to receive enhanced support to promote wine tourism, as agreed by MEPs and the Council. The newly established regulations will facilitate improved EU funding for promotional campaigns that focus on the quality of European wines in international markets.
Under the agreement, the EU will provide up to 60% of the funding. Member States may contribute an additional 30% for small and medium-sized enterprises and 20% for larger companies. This funding will cover the costs associated with various informational and promotional measures, including advertising, events, exhibitions, and studies.
Moreover, the financing for these initiatives and the accompanying promotion plan can be extended for three years, with the possibility of two additional renewals, amounting to a total support period of nine years.
It is important to note that this provisional agreement requires approval from both Parliament and the Council before the new regulations can be implemented.
